Bitcoin (BTC) experienced a sharp and unexpected drop of over $2,000 in just one hour on May 10, causing significant volatility in an otherwise calm market. Leveraged long traders were caught off guard as the price plummeted from a high of $63,494 to an intra-day low of $60,308. The losses continued to mount, with the flagship cryptocurrency losing more than 2.5% of its value in the past 24 hours.
According to Michaël van de Poppe, the founder of MN Capital, this sudden drop is part of the ongoing accumulation phase for Bitcoin, which has been characterized by low volatility and choppy price action since February 29. He also noted that the crash brought Bitcoin back to an important support level.
Another trader, Daan Crypto Trades, suggested that the flash crash to $60,000 on May 9 was a deliberate move to punish those who had entered long positions above $63,000.
Unfortunately, those who were betting on a continuation of Bitcoin’s recovery above $64,000 suffered significant losses on May 10. A total of $127 million in long positions was liquidated, contributing to a 24-hour wipeout of $175.17 million, as reported by Coinglass.
In the past hour alone, $9 million worth of BTC leveraged positions were liquidated, with $6.36 million of that belonging to long positions.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making financial decisions.